Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expense by R100 000 is expected to increase sales by 400 units. 3.4 How many units must be sold if the company wishes to earn a net profit of R298 920.    Using the below information answer the above questions

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
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Problem 5P: Selling and administrative expense budget and budgeted income statement Budgeted selling and...
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3.3 Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expense
by R100 000 is expected to increase sales by 400 units.

3.4 How many units must be sold if the company wishes to earn a net profit of R298 920. 

 

Using the below information answer the above questions

 

 

INFORMATION
Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30
June 2022:
1. Total production and sales                         2 400 units
2. Selling price per table                                R1 200
3. Variable manufacturing costs per table:
 Direct material                                              R288
 Direct labour                                                 R192
 Overheads                                                    R96
4. Fixed manufacturing overheads                R216 960
5. Other costs:
 Fixed marketing and administrative costs   R144 000
 Sales commission 5%

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